ST. LOUIS, Jan. 21, 2021 /PRNewswire/ -- Gershman Investment Corp. provided construction and permanent financing for Delmar Divine Apartments, in St. Louis, Missouri. Managing Director, Chris Will originated a $21 million HUD 221(d)(4) construction to permanent loan, for the adaptive reuse of a vacant former hospital into a market-rate apartment community and non-profit collaborative office space.
Originally built in 1904 to support the World's Fair and now located in an Opportunity Zone, the former St. Luke's Hospital will be transformed into a mixed-use development with 150 apartments and Class A amenities, as well as working spaces and an innovation hub for area non-profits and social services organizations. This 500,000 square foot, $100 million project is a partnership between local business leader Maxine Clark, founder of the worldwide retail chain Build-A-Bear, Clayco founder Robert Clark, Washington University, IFF, US Bank, Gershman Investment Corp. and Social Innovation STL.
The $21.7MM GNMA-backed HUD 221(d)4 provided Delmar Divine Apartments with a 40-year fixed, non-recourse, construction-permanent loan. Gershman's GNMA security was acquired by The Builder's ProLoan Bond Fund, a pension fund whose members are various labor trade unions. The Fund provided a significantly below-market permanent interest rate of 3.00%, and 2.75% interest-only during construction. Other sources in the public-private partnership included Federal and State Historic Tax Credits, New Market Tax Credits, Donations toward the non-profit collaborative, and City Tax Abatement for 15 years. Construction completion is scheduled for Fall, 2021.
Managing Director, Chris Will, commented, "This opportunity zone development will be a tremendous asset for the City of St. Louis. The conversion of this vacant hospital into rental housing, plus the added benefit of the non-profit collaborative hub makes it all the more exciting. Gershman Investment Corp. is proud to be the lender on this deal."
THIS PROJECT IS FEATURED AS ONE OF HUD'S NOTEWORTHY DEALS FOR THE YEAR:
PROPERTY: Delmar Divine Apartments
ADDRESS: 5535 Delmar Boulevard, St. Louis, MO 63112
LOAN AMOUNT: $21.7 Million
LOAN CODE/SECTION: FHA Section 221(d)(4)
- Swimming pool
- Exercise facility
- Covered parking
- Secure access
For more information about our FHA Multifamily financing services, visit https://www.gershman.com/commercial-mortgages/
About Gershman: Gershman Mortgage is among the largest mortgage companies in the Midwest, licensed in 13 states, with offices in 8. The company was founded in St. Louis, MO by Solon Gershman in 1955. Since then, the company has grown to be one of the only independently-owned and operated mortgage companies nationwide offering residential, multifamily apartment and healthcare facility financing. Gershman Mortgage is a customer-centric company devoted to creating and maintaining long-lasting relationships with our customers.
SOURCE Gershman Investment Corp.